Solve qno 66
Journal | ||||
Particulars | L. F. | Debit Amount Rs | Credit Amount Rs | |
Anil’s Capital A/c | Dr. |
| 550 |
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To Mohan’s Capital A/c |
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| 550 | |
(Interest on capital and interest on drawings |
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Working Notes:
WN 1 Calculation of Capital at the beginning
Particulars | Mohan | Vijay | Anil | Total |
Capital at the end | 30,000 | 25,000 | 20,000 | 75,000 |
Add: Drawings | 5,000 | 4,000 | 3,000 | 12,000 |
Less: Profit (1:1:1) | (8,000) | (8,000) | (8,000) | (24,000) |
Capital in the beginning | 27,000 | 21,000 | 15,000 | 63,000 |
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WN 2 Calculation of Interest on Capital
WN 3
Statement Showing Adjustment | ||||
| Mohan | Vijay | Anil | Total |
Interest on Capital to be credited | 2,700 | 2,100 | 1,500 | 6,300 |
Less: Interest on Drawings | (250) | (200) | (150) | (600) |
Right Distribution of Rs 5,700 | 2,450 | 1,900 | 1,350 | 5,700 |
Wrong Distribution of Rs 5,700 (1:1:1) | (1,900) | (1,900) | (1,900) | (5,700) |
Net Effect | 550 | Nil | (550) | NIL |
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WN 4 Calculation of Final Profit Share of Partners
Total Corrected Profit Available for Distribution = Profit - Interest on Capital + Interest on Drawings = 24,000 - 6,300 + 600 = Rs 18,300